Canada

Aug. 23 (UPI) — U.S. President Donald Trump on Sunday accused Canada of wanting the “benefits of being a state, without being one” as trade tensions between the U.S. and its northern neighbor escalate.

“Canada wants the benefits of being a State, without being one!!!,” Trump posted on social media overnight. “They have also charged our great farmers, for many years, massive amounts of Tariffs. No more!!!”

Trump’s remarks came after Canadian Prime Minister Mark Carney said Ottawa next month would impose retaliatory tariffs on the U.S. after the Trump administration’s 50% tariffs on Canada took effect.

Carney told a press conference that his government would “match Washington’s new tariffs dollar for dollar in order to protect Canadian workers, farmers, families and businesses.”

He said further details on the retaliatory tariffs would be released in the “coming days,” with the levies targeting steel, dairy, appliances, agricultural equipment, pulp and paper, and electronics.

Carney said Ottawa is “reluctantly” taking this step.

Trump has previously discussed making Canada the 51st state, which Canadian leaders have rejected.

Canada’s Prime Minister Mark Carney has announced retaliatory tariffs on the United States after Washington imposed a 50 percent levy on $20bn worth of Canadian goods.

Carney, speaking in Ottawa on Saturday, said the new Canadian tariffs would target US steel, dairy and electronics industries among others and take effect on September 8.

“Canada will match Washington’s new tariffs dollar for dollar in order to protect Canadian workers, farmers, families, and businesses,” Carney told reporters.

The announcement came after days of intense negotiations broke down late on Friday, worsening a delicate relationship between the longtime trade partners and allies.

US President Donald Trump’s new tariffs hit sectors including wine, furniture, dairy products, cement, clothing, fishing rods and hockey equipment, and cover some $20bn worth of goods, or 5.5 percent of Canadian exports to the US.

Carney said Trump set conditions that were ultimately unacceptable even though earlier talks had been positive.

“In recent days, the United States proposed new terms that were uneconomic, unfair and undermined the net benefits for Canada, and called into question the reliability of any deal,” Carney said, adding these demands included curtailing Canada’s ability to forge new trade deals.

“We cannot accept what they’ve offered, and we will not give what they’ve asked.”

He added that US negotiators also made unacceptable “threats” to the French language and “Quebec culture”, referring to the French-speaking province in eastern Canada.

No new talks planned

Carney is one of the few global leaders to retaliate against US tariffs and has pledged to forge new trade and military alliances, despite Canada’s dependence on the ‌US for nearly 70 percent of its exports.

Canada will impose tariffs on US steel, dairy, appliances, agricultural equipment, pulp and paper, and electronics, along with some products the US previously targeted in Canada, Carney said from Ottawa’s Parliament building. The government will release details on its response in the coming days, he said.

Carney said Canada would announce support measures next week for industries hit ⁠by the new US duties, adding these measures could last years.

There was no immediate comment from the White House.

US Trade Representative Jamieson Greer told Fox News on Saturday that no new ⁠talks are planned with Canada.

“We’re moving forward with measures that respond to Canadian retaliation,” Greer said. “They’ve always had the best deal, and they still would have an even better deal, but they didn’t want that.”

The new US tariffs are expected to have a major impact on Canada’s economy.

“Costs are going to go up, prices are going to go up, unemployment is going to go up as well,” said Al Jazeera’s David Mercer, reporting from the Canadian city of Calgary. “And it’s been warned that business owners – small [and] medium-sized businesses – some of those will have to declare bankruptcy,” he said.

At the same time, Mercer said, Carney is selling the trade war as an opportunity for Canada to strengthen its trade relations with other countries.

“He’s been around the world, he’s been talking to countries in Asia, in Europe, shoring up new trade relationships, wanting to diversify Canada’s economy and Canada’s trade relationships with other countries around the world just to get away from that dependency that Canada has traditionally had on the United States,” he said.

Public opinion surveys in Canada show most Canadians back a “tougher approach” to the US in the trade talks. A poll by Leger last week said 56 percent of Canadians favoured a hard line and making no more concessions.

‘Bad deal’

Ontario Premier Doug Ford, one of the most vocal ⁠opponents of US tariffs, supported Carney’s decision to retaliate.

“I’m glad he didn’t sign that deal because it was a bad deal. It was a bad deal for Ontario. It was a bad deal for the auto sector, the steel sector, and manufacturing sector,” Ford told reporters on Saturday.

In Port Colborne, Ontario, resident Stuart Edwards said the trade war was going to “hurt everybody” and “it’s just sad”.

“We have a bully in Washington, and he’s just hitting us all with the big stick all the time,” he said. “And we’re not going to put up with it; Canada isn’t. We’ll fight back.”

But Pamela Coulis, from Fort Erie in Canada, was worried about rising prices.

“I think probably the gas will go up even more, and all products, from food to, I don’t know, wood, everything else,” she said.

Diamond Isinger, who served as a special adviser to former Canadian Prime Minister Justin Trudeau, said both countries will suffer from the trade war.

“It’s going to cause pain and challenge for Canadians and Americans alike, in terms of the actions that, unfortunately, the US has taken as well as Canada’s retaliation. But ultimately this was the way forward; this was the only realistic next step,” she said.

“Because the US administration responds best, of all the responses that they could have, to all the actions that a government like Canada could take, to strength,” Isinger added.

“So, we could not simply accept 50 percent tariffs going forward. We had to move forward with our own retaliatory package.”

In the US, the escalating trade war was met with anger by Democratic lawmakers and governors from border states including Minnesota, New York and Washington, who blamed Trump for triggering chaos that would raise costs for US businesses and families.

“Needlessly picking fights with our allies and raising prices here at home. That’s Trump’s economic policy in a nutshell,” New York Governor Kathy Hochul posted on X.

The Business Roundtable, a group of 200 chief executives of leading US corporations, also warned the new tariffs “risk raising costs for American businesses and families”, and urged both governments to resume negotiations.

A fresh wave of US tariffs on a wide array of Canadian goods has come into effect as of midnight on Saturday after a last minute break down in trade talks.

Announcing the suspension of negotiations shortly before the Friday night deadline, Canadian Prime Minister Mark Carney said he would impose reciprocal tariffs on US goods “dollar for dollar”.

Carney said “last-minute changes in the US proposed terms were unfair, uneconomic, and called into question the reliability of any deal”.

Trade negotiators had been engaged in intense talks since July, after President Donald Trump threatened to impose a 50% levy on nearly $20bn (C$28bn) of Canadian imports by 19 August.

Trump had temporarily paused those tariffs earlier in the week, saying the two sides were close to signing a trade deal that was “very good” for both countries.

But minutes before a deadline for a deal, Carney said that while “important progress” had been made in the talks it was “not enough to meet our objectives for Canadians”.

“As a result, this evening, I have decided to suspend trade negotiations with the U.S. and have directed negotiators to return to Ottawa,” he said.

“Last-minute changes in the US proposed terms were unfair, uneconomic, and called into question the reliability of any deal.”

After Carney’s announcement US trade representative Jamieson Greer said in a statement: “Tonight, Canada declined to finalize the trade deal under the terms agreed earlier this week.

“Despite the US offer to Canada to receive the best treatment of any major exporter to our market, new demands and walk backs of other commitments by Canada have upended the careful balance reached in the past days,” the statement on X said.

The breakdown in talks marks a significant shift in tone from earlier in the week, when both US and Canadian officials sounded optimistic that a trade deal beneficial for both countries was within reach.

Negotiators were reportedly discussing a deal that would reduce US tariffs on Canadian steel and aluminium from 50% to 25%, and on Canadian autos from 25% to 15%.

In exchange, Carney had asked Canadian provinces to restore US alcohol to store shelves.

Tensions between the two major trading partners have been simmering since Trump returned to office in January last year and unleashed a wide-ranging global programme of tariffs, upending decades of free trade between Canada and the US.

Now that talks have broken down, Canada will be hit with new 50% US tariffs imposed by Trump using a Depression-era law called the Tariff Act of 1930.

They will be applied on a range of goods, including wine, dairy, cement, clothing and hockey equipment.

They are in addition to existing tariffs the US had already imposed on Canadian steel and aluminium, autos and lumber.

Doug Ford, the traditionally outspoken premier of Canada’s largest province Ontario, said “the prime minister has my full support for a strong response—tariff for tariff, dollar for dollar,” following Carney’s announcement.

Canada has been engaged in on-again, off-again trade negotiations with the US for over a year in pursuit of a deal that would see the US drop or reduce tariffs on these key sectors.

The US, meanwhile, has been asking for a number of concessions from Canada, including removing its remaining retaliatory tariffs on American autos and adjusting its dairy quotas to allow greater access for US cheese producers.

It has also asked for the ban on US alcohol sales, imposed last year by most Canadian provinces in retaliation to Trump’s tariffs, be removed.

Businesses and stakeholders on both sides of the border had pushed for a deal to be reached, arguing that the new US tariffs on Canada will be harmful to both countries.

The US Chamber of Commerce said earlier in the week in a statement that “higher tariffs would damage both economies, drive up costs for US families, further disrupt critical supply chains, and risk the 13 million American jobs that depend on trade under the US-Mexico-Canada Trade Agreement”.

A recent poll by Canadian firm Abacus Data suggested that around 36% of Canadian would support retaliating to US tariffs, while another 30% would want the Carney government to continue negotiating.

Retaliation risks upsetting the Trump administration, with trade representative Jamieson Greer saying the US is “not going to tolerate” counter-tariffs.

“We’ll take action,” he told reporters last week.

Canada official condemns Israel’s ‘invasion’ of Lebanon, calls for sovereignty as aid pledged to the crisis-hit nation.

Canada’s secretary of state for international development, Randeep Sarai, visited Lebanon to announce new humanitarian aid, condemning what he called Israel’s “unlawful invasion” of Lebanon.

During his visit, Sarai stated that Beirut should govern its own space. He also announced new programmes Canada is launching to support Lebanese families affected by the conflict, raising its total assistance to Lebanon this year to more than $50m.

“Our commitment is long-term, and we’re there for Lebanon,” said Sarai, who visited shelters housing people displaced by the war and Syrian refugees during his visit.

Amid the escalation between Israel and Lebanon in March, Canada warned on March 25 that Lebanese sovereignty and territorial integrity “must not be violated” and strongly condemned plans by Israeli forces to occupy southern Lebanon.

As part of the US-mediated framework agreement signed in late June, “pilot zones” were designed to return small areas in southern Lebanon from Israeli forces to the Lebanese army.

In late July, the Lebanese Armed Forces accused Israel of obstructing its efforts to take over control of security in southern Lebanon.

The war has killed more than 4,000 people and has caused widespread destruction across Lebanon. The United Nations says that about 360,000 people are displaced as a result of the latest conflict.

Home to a large Lebanese diaspora, Canada has given Lebanon about $575m in assistance in the past 10 years, Sarai said.

Sarai also met Lebanese President Joseph Aoun and Prime Minister Nawaf Salam, who promised to reinstate state authority across Lebanon and to implement reforms to fight corruption.

Israeli officials said they will not pull out of Lebanon until Hezbollah is disarmed.

Aug. 18 (UPI) — President Donald Trump late Tuesday announced a three-day pause on imposing 50% tariffs on Canada less than two hours before they were to go into effect, saying a trade deal has been made.

The tariffs were to go into effect at 12:01 a.m. Wednesday, but were delayed by Trump’s announcement on social media issued about 90 minutes before the deadline.

No specifics on what the deal entailed were offered, though Trump said the controversial Keystone XL Pipeline project, revoked by former President Joe Biden over climate change concerns, “may be awoke from the grave!”

The deal remains to be finalized, he said.

While congratulating Trump, U.S. Trade Representative Jamieson Greer added that the deal includes “comprehensive access for all American goods,” economic security commitments, digital trade alignment and other provisions protecting the U.S. market.

Prime Minister Mark Carney of Canada has yet to comment.

Greer had been leading negotiations with Canadian representatives ahead of the deadline. He said last week that the negotiators were reviewing options and that he expects Canada to drop certain measures it had already taken in response to the U.S. tariffs, The New York Times reported.

“If a country retaliates against us, we’re obviously not going to tolerate that,” Greer told reporters Friday. “We’ll take action. My sense is the Canadians want to have a more conciliatory approach, but we’ll see.”

Trump signed orders in July to impose 50% tariffs on $20 billion worth of Canadian goods, including cement and hockey sticks, representing about 2% of the entire trade between the United States and Canada, starting Wednesday.

“President Trump is taking action to hold Canada accountable for its continued discrimination against and unreasonable and unequal treatment of U.S. commerce that has burdened and disadvantaged hard-working Americans,” the White House said in a statement at the time.

On Aug. 5, he called Canada “nasty” in a Las Vegas speech.

“Canada’s nasty. They are. They’re nasty,” Trump said. “I love the people, but they’re nasty. Nasty leadership.”

Canadian Prime Minister Mark Carney and Trump spoke on the phone Monday, a Carney spokeswoman said. She didn’t give any details.

Canadian negotiators also want to ease the tariffs already imposed on Ottawa industries. There are tariffs of up to 50% on steel, aluminum and autos. Some tariffs also affect Canadian softwood lumber.

Canadian lumber manufacturing CEO John Brink told CTV that tariffs have devastated the lumber industry. He said, “most of the lumber industry in Canada is paying up to 45.16% in tariffs and duties combined. So the effect has been devastating.”

Brink said about half of British Columbia’s lumber manufacturing capacity has shut down.

“There used to be 800 secondary manufacturers in British Columbia alone. We are now down to about 50. Not all due to tariffs and duties, but due to a combination of [factors],” Brink added.

“I think the big question for the United States is: Are they even interested in securing an agreement, a deal, some kind of operational détente, or is Trump’s real objective just to flex? Is it just to demonstrate he’s in control? In which case, we’re chasing a phantom deal,” CTV News political commentator Scott Reid said.

He added that the deadline will be “the most important, most significant and most treacherous of Mark Carney’s political career.”

Greer has said he expects Canada to make concessions if a deal goes through. But not everyone in the Great White North wants that.

“Canadians elected Mark Carney to both stand up to Trump while also trying to negotiate a deal, or negotiate down the tariffs, and I don’t think those are mutually exclusive, but it is a narrow path for sure,” said Brian Clow, a former senior official in Prime Minister Justin Trudeau‘s government, The Times reported.

If no deal is made, expect the trade war to escalate, Clow said.

“If the U.S. decides to proceed with imposing these new tariffs tomorrow, Canada, although this current government has eased back on retaliation, will have to respond in some way,” he said.

Former senior White House trade adviser Kelly Ann Shaw told CTV that negotiations look “promising” for Canada.

“I’ve been involved in a number of international trade negotiations and other negotiations throughout my career, and the hardest issues always get resolved at the very last moment,” Shaw told CTV Tuesday.

“So I don’t expect any sort of announcement until later today, possibly as late as midnight,” Shaw said. “But the fact the two parties are still at the table, I take as a good sign.”

Trump has long used tariffs as a mechanism for both punishment and negotiation, and during his second term, he attempted to impose sweeping tariffs, including against Canada, but they were thrown out by the U.S. Supreme Court in February.

The tariffs paused late Tuesday were to join the 10% import duty on many Canadian goods, as well as previously imposed tariffs ranging from 10% to 50% on products, such as steel, aluminum, copper, automobiles and softwood lumber.

Canada responded by imposing a temporary 25% tariff on certain wood cabinets and vanities, as well as a 25% tariff on U.S. vehicles, as well as selected steel and aluminum products, among others.

BREAKINGBREAKING,

Trump announces pause on 50 percent duty on Canadian exports shortly before midnight deadline.

The United States and Canada have reached a deal to avert steep tariffs on billions of dollars of Canadian goods, US President Donald Trump has announced.

Trump made the announcement shortly before the expiry of a midnight deadline for imposing a 50 percent duty on a wide range of Canadian exports, including electronics, industrial machinery, furniture, and dairy products.

“I have paused the 50% Tariffs against Canada, that were scheduled to kick in tomorrow morning for a three day period, based on the fact that Canada and the U.S.A., subject to the finalization of documents, have a DEAL!” Trump wrote in a post on Truth Social.

“The great Keystone XL Pipeline, long ago killed by Sleepy Joe Biden, may be awoken from the grave!”

More to follow…